When you're self-employed as a hairdresser, organising your receipts and invoices is essential for keeping your business running smoothly - especially when tax season rolls around. Proper organisation not only ensures you're ready for tax filings, but it also helps you track business expenses, claim deductions, and avoid stress. Here’s how to organise your receipts and invoices to stay on top of your finances.

1. Create a System for Collecting Receipts

   The first step in organising your receipts is creating a system for collecting them. Every time you make a business-related purchase, make sure to keep the receipt. If you're using paper receipts, store them in a designated folder. For digital receipts, consider saving them in a dedicated folder on your computer or cloud storage.

2. Use an App for Scanning Receipts

   One of the most efficient ways to manage receipts is by using a receipt scanning app. There are several apps available that allow you to take pictures of your receipts and store them digitally. This way, you can keep track of all receipts without the clutter of paper.

3. Categorise Your Expenses

   Categorising your expenses is key to staying organised. You can categorise receipts by type of purchase, such as salon supplies, marketing costs, travel expenses, or business-related meals. Most accounting software, such as Xero, allows you to create categories for each type of expense, helping you keep things organised and simplifying the tax preparation process.

4. Keep Digital Records

   In the digital age, it’s wise to store all receipts and invoices electronically. Digital records are easier to search, retrieve, and back up compared to physical documents. Scan or photograph paper receipts, and save all digital invoices in cloud storage. Ensure that your receipts and invoices are legible and clearly show the purchase date, amount, and supplier or service provider name.

5. Store Receipts by Month or Quarter

   When it comes time to file your taxes, you want to have easy access to your receipts and invoices. Organise them by month or quarter so that they’re easier to find when needed. This method will also help you keep track of your expenses over time and spot trends in your spending, helping you to stay within budget.

6. Keep Track of Invoices Sent

   Keep track of all invoices you send out, noting whether they’ve been paid or not. A simple spreadsheet can help you track payments and unpaid invoices.

7. Use Accounting Software to Organise Documents

   Connecting your FroHub account with accounting software like Xero can help automate much of the record-keeping process. By integrating your booking data, you can track your income and expenses without having to input everything manually. Xero can also categorise and store your receipts and invoices, giving you a comprehensive overview of your financials and ensuring everything is organised come tax time.

8. Set a Regular Time to Organise Receipts

   Consistency is key when it comes to keeping your receipts and invoices organised. Set aside time each week or month to go through your receipts, update your records, and categorise new expenses. Regular maintenance will prevent the task from becoming overwhelming when tax season approaches.

9. Consult a Professional Accountant

   If you’re unsure about how to organise your receipts and invoices or need help with tax filing, consider consulting a professional accountant. They can offer expert advice on the best organisational practices and ensure you're compliant with tax laws, as well as help you maximise deductions.

Organising your receipts and invoices is a crucial part of managing your finances as a self-employed hairdresser. By creating a system for collecting, categorising, and storing your receipts, you’ll be well-prepared for tax season. Using apps, digital tools, and accounting software like Xero, connected with your FroHub account, can help automate and streamline the process, saving you time and stress. Stay organised throughout the year, and your tax filings will be a breeze.